The Supreme Court of Ukraine (SCU) explained its position on a number of revised judicial decisions of commercial courts

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February 2012

With a letter dated 27.02.2012 the Supreme Commercial Court of Ukraine summarized a number of rulings of the SCU on reviewed judicial decisions of commercial courts. From the above letter the following key points should be identified:

- a parties' agreement to terminate a lease contract does not preclude the parties from the settlement of obligations arising prior to the contract termination;

- whatever way a penalty amount is defined in a contract, it may not exceed an amount prescribed by the law as a limit, that is, for late payment under a contract a penalty may be charged, but it should not exceed the amount computed on the basis of a double rate of the National Bank of Ukraine;

- as the law regarding rental relationships, establish a possibility of a penalty for the whole time delay in fulfillment of an obligation to return the leased object, reducing the period of accrual of the penalty to six months is baseless;

- a defendant failure to fulfill obligations to pay for received goods in case of availability of funds prescribed in the State Budget of Ukraine for the relevant year is a violation of Article 526 of the Civil Code;

- from the moment of a legal entity participant notification about his withdrawal from the company with repayment of his share in the property value the company is obliged to repay the cost of the participant`s share, and nonfulfillment of such obligation entails to consequences of monetary obligations performance delay;

- an individual entrepreneur bankruptcy proceeding shall be terminated in case of absence of signs of insolvency of the debtor, in particular, in case of determination of property in debtor's ownership, as well as finding out that not all monetary claims against the debtor are indisputable.